The global economy, a rise in piracy and terrorism combined with recent legislation are creating opportunities for life insurers to sell kidnap and ransom cover to clients – even if there still is a bit of an education curve that remains
“I don’t think we’ve had anybody call us and say, ‘we’re concerned about Bill C-45,’” says Sophie Strezos-Egnatis, vice president of business development for Hunter McCorquodale. “But it is an important piece of information when you are discussing the importance of risk management, having the right insurance and the right risk-management strategy in place – especially when you have employees travelling.”
While many life agents and brokers may not feel comfortable in discussing K&R with their clients – as it has been traditionally in the P&C realm and a niche product – insurers are there to provide numbers, fact sheets and statistics to support the broker – including Bill C-45.
“I sold a policy earlier this summer, and the broker wasn’t well-versed on the subject,” she says. “But when the conversation turned to Bill C-45, the client’s eyes just kept getting bigger. It was then they realized that there are exposures for employees who are working abroad.”
While Strezos-Egnatis points out that there is a lot of product in the P&C space for Kidnap & Ransom coverage, but it is on the corporate product.
“For those seeking individual or family coverage on K&R, it is not that readily available,” she says. “And that is where life agents can step in and sell it.”
It is a gap in the market that Hunter McCorquodale saw months ago when inquiries about the coverage began filtering in from brokers and agents, leading to the creation of their own special risk solution through Lloyd’s for Kidnap, Detention, Extortion and Hijack Protection.
And given the global nature of doing business – and the inherent risks that are seen on the news every day – it is a product that is poised to take off.
“There is a growing demand from the end user we’re seeing out there,” says Strezos-Egnatis. “Because companies see this as a risk to people, they are approaching their life agent and benefits consultant and are seeking help in finding an appropriate product.”
While many life agents and brokers may not feel comfortable in discussing K&R with their clients – as it has been traditionally in the P&C realm and a niche product – insurers are there to provide numbers, fact sheets and statistics to support the broker – including Bill C-45.
“I sold a policy earlier this summer, and the broker wasn’t well-versed on the subject,” she says. “But when the conversation turned to Bill C-45, the client’s eyes just kept getting bigger. It was then they realized that there are exposures for employees who are working abroad.”
While Strezos-Egnatis points out that there is a lot of product in the P&C space for Kidnap & Ransom coverage, but it is on the corporate product.
“For those seeking individual or family coverage on K&R, it is not that readily available,” she says. “And that is where life agents can step in and sell it.”
It is a gap in the market that Hunter McCorquodale saw months ago when inquiries about the coverage began filtering in from brokers and agents, leading to the creation of their own special risk solution through Lloyd’s for Kidnap, Detention, Extortion and Hijack Protection.
And given the global nature of doing business – and the inherent risks that are seen on the news every day – it is a product that is poised to take off.
“There is a growing demand from the end user we’re seeing out there,” says Strezos-Egnatis. “Because companies see this as a risk to people, they are approaching their life agent and benefits consultant and are seeking help in finding an appropriate product.”
